Quarterly report III/2013

1
Q3
Interim Report
for the period from
1 January to
30 September 2013
Key figures
9M 2013 9M 2012
Q3 2012
Q2 2013
Total revenues 1)
in € million
62.06
54.23
21.58
18.33
20.89
Revenues from services
in € million
61.00
53.42
21.14
18.08
20.60
Premium Club revenues
in € million
40.08
37.96
13.65
12.71
13.56
e-Recruiting revenues
in € million
17.06
12.24
6.19
4.34
5.62
Events revenues
in € million
3.69
2.98
1.25
0.95
1.36
Network revenues
in € million
0.18
0.24
0.05
0.08
0.07
in € million
17.37
15.41
6.21
5.52
5.86
in %
28
28
29
30
28
Earnings for the period
in € million
7.41
6.25
2.72
2.20
2.69
Operating cash flow
in € million
17.76
15.10
4.41
4.74
6.95
EBITDA
EBITDA margin
Earnings per share (undiluted)
in €
1.33
1.14
0.49
0.40
0.48
Equity
in € million
58.27
48.50
58.27
48.50
55.14
Liquid assets
in € million
62.60
55.05
62.60
55.05
60.67
Members worldwide
in millions
13.76
12.65
13.76
12.65
13.46
in thousands
829
795
829
795
825
in millions
6.72
5.91
6.72
5.91
6.51
in thousands
805
770
805
770
801
560
524
560
524
552
thereof Premium members
(worldwide)
Members in D-A-CH
thereof Premium members
(D-A-CH)
Employees
1)
Q3 2013
Including other operating income.
1
ABOUT XING
Ten years of XING. In the German-speaking world (D-A-CH), XING
stands like no other company for the phenomenon of professional
networking. During the past ten years, XING has been the place
where a constantly increasing number of members meets, establishes
contacts and networks by exchanging experience, discussing current
affairs, obtaining information or even finding a new job. Even after
ten years, the potential for further growth is immense, particularly in
times of a severe shortage of specialists with companies desperately
searching for new talent. For them, XING is the largest talent network
in the D-A-CH region. For our members, it is the platform that provides
them with everything they need to realise their career goals.
Contents
2To our shareholders
6Financial information
2
Executive Board letter
6
4
XING share
18
Interim group management report
Consolidated interim financial statements
18 Consolidated income statement
19 Statement of comprehensive income
20 Consolidated balance sheet
22 Consolidated cash flow statement
24 Consolidated statement of changes in equity
25 Notes to the consolidated interim financial statements
29Service
29
Financial calendar, masthead and contact
2
Executive Board letter
Dear shareholders,
The previous quarter was highly eventful here at XING as we rolled out several new products within our
two core business divisions. These products are key steps on the path towards achieving our growth targets. In keeping with this, we are very happy to report that last year’s realignment is already proving successful with products launched just a few months ago already having a positive impact on our revenues
and profits. We are therefore extremely happy with these interim results as the growth rate for Q3 accelerated again compared to the respective previous year’s quarters. Total revenues grew by 11 per cent in Q1
and 15 per cent in Q2, but both of these figures were topped in Q3 where we saw growth of 18 per cent,
taking total revenues to €21.58 million (Q3/2012: €18.33 million).
Our growth is based on three divisions:
1. Premium Club
The Premium Club is our largest revenue source and accounts for 63 per cent of revenues. During the third
quarter, revenues in this division grew by seven per cent to €13.65 million. The net number of new
Premium members in Q3 grew by around 4,000, thus taking total Premium membership for the D-A-CH
region to over 805,000. Since the start of 2013, net Premium membership figures grew by around 22,000.
We already have a lot of projects in development for our core business, and will be rolling out the “New
Premium” during the fourth quarter of the year which will offer more Premium features, an entirely new
product experience, and genuine offline added value including free access to the Design Offices co-working
areas. We will continue to expand these offerings over the coming months in order to lend our Premium
members a helping hand during their working day. All of these measures will help us pave the way toward
further growth in our core business.
2. e-Recruiting
XING’s current main growth driver is the e-Recruiting division which reported a 43 per cent rise in revenues
to €6.19 million for Q3/2013 (Q3/2012: €4.34 million). Here we made two key changes over the last few
months. In July we added social components to our job ad offerings and have succeeded in growing within
a shrinking market. Just a few months later we presented the latest version of the XING Talent Manager
(XTM) at Germany’s largest human resources trade fair, Zukunft Personal. We are very proud that we sold
more than 3,000 XTM licenses as of the end of September and also entered into an active candidate sourcing partnership with Deutsche Telekom who started using XING in its recruiting work at a very early stage.
Deutsche Telekom’s HR department started using XTM at the start of this year and has measured its experience with the tool. The impact on the company’s recruiting work was impressive with the cost to hire
dropping by over 80 per cent thanks to XTM, and the time to hire was also drastically improved as well.
To our shareholders
Financial information
Service
Executive Board letter
External studies also underline XING’s market-leading position on the German social recruiting scene with
a survey carried out by the Institute for Competitive Recruiting (ICR) showing that 69 per cent of the HR
managers queried stating that XING provides the best active candidate sourcing results. Based on these
encouraging signs, we will continue to invest in this area and build upon our market-leading position over
the coming years.
3. Events
Our newest and currently unprofitable Events division reported positive Q3 growth of 32 per cent, taking
revenues for that division to €1.25 million (Q3/2012: €0.95 million). amiando, also known as XING Events,
will increasingly become a digital business partner for ambitious event organisers rather than a self-service
platform for ticketing technology. Future publications will cover all of our next steps in realigning our
Events division.
All in all, after deducting costs our EBITDA grew by 12 per cent in Q3 to €6.21 million. Net profit for Q3 was
€2.72 million compared to €2.20 million in Q3/2012, meaning that we are well on course for meeting our
goals for 2013.
Our strategy and achieved milestones have also had a positive impact on XING AG’s stock price. We are
very happy about this development and would like to thank you for your trust and confidence in XING.
Dr. Thomas Vollmoeller
CEO
XING AG
Ingo Chu
CFO
XING AG
Timm Richter
CPO
XING AG
Jens Pape
CTO
XING AG
3
4
XING share
Basic data about the XING share
Number of shares as of 30 September 2013
5,592,137
Share capital in €
5,592,137.00
Share type
Registered shares
IPO
7 December 2006
WKN / ISIN
XNG888 / DE000XNG8888
Bloomberg
O1BC
Reuters
OBCGn.DE
Transparency level
Prime Standard
Index
TecDAX
Sector
Software
Key data on the XING share
9M 2013
9M 2012
XETRA closing price on 30 September in €
81.27
37.86
High in €
81.27
58.50
Low in €
38.00
33.51
Market capitalisation at end of period in € million
454.5
207.4
Average trading volume per trading day (XETRA)
9,239
18,570
based on order book turnover
28
30
based on free-float market capitalisation
31
22
1.33
1.14
TecDAX ranking
Earnings per share (undiluted) in €
To our shareholders
Financial information
5
Service
XING share
XING share price development vs. indices from 28 December 2012 to 30 September 2013
in %
XING AG
Indexed to 100%
200
200
180
180
160
160
140
140
120
120
100
100
80
80
28/12/2012
28/01/2013
28/02/2013
31/03/2013
30/04/2013
31/05/2013
30/06/2013
31/072013
TecDAX
SDAX
31/08/2013
DAX
30/09/2013
Share price of XING shares on 28 December 2012, €41.87 = 100%.
200
XING share price development vs. indices
in %
180
9M 2013
160
XING share
+94
TecDAX
140
+31
DAX
120
+13
SDAX
100
+22
Shareholder structure as of 6 November 2013
in %
Burda Digital GmbH
Deutsche Asset and
Wealth Management
30.67
Ennismore
52.26
Treasury Shares
0.68
80
Schroders
Other shareholders
5.05
5.25
6.09
Analyst recommendations for the XING share as of 6 November 2013
Broker
Analyst
Recommendation
Berenberg Bank
Sarah Simon
Buy
€82.00
Close Brothers
Marcus Silbe
Buy
€60.00
Commerzbank
Heike Pauls
Buy
€78.00
Deutsche Bank
Benjamin Kohnke
Hold
€73.00
Hauck & Aufhäuser
Sascha Berresch
Sell
€60.00
HSBC
Christopher Johnen
Underweight
€36.00
Jefferies
David Reynolds
Underperform
€32.00
J.P. Morgan Cazenove
Nicolas J. Dubourg
Hold
€46.00
Montega
Alexander Braun
Sell
€36.50
Warburg Research
Jochen Reichert
Hold
€65.00
Price target
6
Interim group management report
for the period from 1 January to 30 September 2013
Group revenues
EBITDA
in € million
in € million
60
17.37
18
70
62.06
15.41
15
54.23
50
12
40
9
30
6
20
3
10
0
Q1 -Q3 2012
Q1 - Q3 2013
Business development
Result of operations within the XING Group
XING has continued to significantly grow its revenues and profits
over the first nine months of the year with total revenues
(including other operating income) rising by 13 per cent from
€54.23 million in Q1-Q3 2012 to €62.06 million in Q1-Q3 2013. If
we focus on the third quarter, we can see a successive rise in
growth rates compared to Q1 and Q2 2013 with total revenues for
the third quarter growing by 18 per cent from €18.33 million in
Q3/2012 to €21.58 million in Q3/2013 (Q1/2013: 11 per cent;
Q2/2013: 15 per cent).
As previously announced, our marketing expenses rose in order
to support in particular the marketing of our new e-recruiting
offers. Our marketing expenditure of €1.80 million in Q3/2013
was 50 per cent higher than in Q2/2012, but when viewed over
the whole nine-month period, these expenses remained the
same as the first nine months of 2012 (€4.31 million). HR costs of
€25.74 million, which equate to 41 per cent of total revenues,
were around 15 per cent higher than the same period in 2012
(Q1-Q3 2012: €22.46 million). This is largely attributable to the
kununu GmbH acquisition in Q1/2013 and the increased number
of employees resulting from the acquisition. As a result of renting new office space and server capacity as well as an increase
0
Q1 -Q3 2012
Q1 -Q3 2013
in IT and product development costs, our other operating
expenses rose from €11.84 million in Q1-Q3 2012 to €14.64 million in Q1-Q3 2013.
In keeping with this, the XING Group’s EBITDA improved by
13 per cent from €15.41 million in Q1-Q3 2012 to €17.37 million in
Q1-Q3 2013. Despite investing in future growth, the EBITDA margin on total revenues including other operating income
remained at 28 per cent, the same level as in Q1-Q3 2012.
Planned depreciation during the first nine months of 2013
amount to €6.26 million (Q1-Q3 2012: €6.02 million) and contain
around €0.94 in depreciation for assets of the acquired companies amiando GmbH and kununu GmbH identified within the
scope of the purchase price allocation.
As a result, XING’s EBIT for the current financial year comes to
€11.11 million (Q1-Q3 2012: €9.38 million), which equates to an
18 per cent margin on total revenues (including other operating
income). The margin for the same period in 2012 came to 17 per
cent. After deducting €3.79 million in taxes (tax rate: 33.9 per
cent), the consolidated net profit amounted to €7.41 million, an
increase of 19 per cent compared to Q1-Q3 2012 (€6.24 million).
Earnings per share for the first nine months of 2013 were €1.33
compared to €1.14 in Q1-Q3 2012.
To our shareholders
Financial information
Service
7
Interim group management report
Members in D-A-CH region
in millions
7
6
6.72
5.91
5
4
3
2
1
0
Q3 2012
Q3 2013
Network and member growth
XING’s accelerating revenue and profit growth over the previous
quarters and the newly launched products – particularly in the
e-Recruiting division – were also attributable to the continually
growing XING platform. The more employees, freelancers and
students who have a profile on www.xing.com, the more appealing our platform is to companies looking to win the battle for
talent by using social media.
214,000 people signed up to XING in the D-A-CH region during
Q3, which is almost 10 per cent more than in Q3/2012. As a
result, membership grew quarter for quarter in 2013, despite the
general seasonal trends. XING membership for the D-A-CH
region came to over 6.7 million as of the end of September,
while worldwide membership reached the 13.8 million mark.
At the start of July we launched a new version of our profile and
also focused on mobile after Apple unveiled its new operating
system version at the WWDC conference in San Francisco on
10 June. We were positively surprised at the extent to which
Apple had changed the design with the skeuomorphic user interface blending into the background to focus more on content.
A lot of the user controls have been replaced by smart animations, while typography is also a main focus.
iOS 7-ready in a few weeks
After having set ourselves the ambitious goal or releasing the
XING iPhone app at the same time as the official iOS 7 launch,
we only had a few weeks to make our app iOS 7-ready. This
means changing the design and enabling support for new features such as downloading new data in the background or
dynamic new system-wide font size changes allowing iOS 7
users to adjust the font for all of their apps.
8
Premium Club revenues
Paid members
in € million
in thousands
45
40
37.96
40.08
1,000
800
35
30
International
D-A-CH
795
829
25
24
600
25
805
20
400
15
10
770
200
5
0
Q1 -Q3 2012
Q1 -Q3 2013
Premium Club
The intentional focus on our basic membership over the last few
years led to a lack of incentives for members to upgrade to
Premium. This meant that Premium membership growth rates
slowed somewhat, but still heralds major potential as we are
currently working to expand our Premium Club and drive
growth rates. Over the last few quarters we have been working
hard in preparation for our Premium membership relaunch. This
involved a lot of changes we have been beta testing among a
select group since the start of October.
What changes does the New Premium section have to offer?
We consider it very important to boost loyalty levels among
our active paid XING users and improve their satisfaction after
having focussed heavily on basic member growth over the last
few years.
1. Premium overview
The new Premium overview provides Premium users with key
information surrounding their advanced features and allows
them to navigate all of these features from a single page.
0
Q3 2012
Q3 2013
To our shareholders
Financial information
Service
9
Interim group management report
2. Profile visitors
The extremely popular profile visitors overview will be expanded
so that Premium members not only see who visited their profile,
but also often that person paid a visit, which search terms
they used, and which industry or company that person is at.
This provides Premium members with an even more systematic
way to optimise their profile and make sure they get found. Now
Premium members can also see which items of their profile
visitors viewed, such as their portfolio. Job-seekers and people
thinking about switching jobs can also see if any recruiters
visited their profile.
3. Find members
This feature is specifically designed to help members expand
their personal network. Paid members have the following
options:
1.
•
•
•
•
•
•
•
By commonality
Similar profiles: members with similar profiles
Contacts: shared contacts
Industries: work in the same industry
Organisations: active in the same organisations
Interests: common interests
Current employer: colleagues
Former employer: used to work at the same
company together
2.
•
•
•
•
•
By other criteria
Want what I have
Visited
May know
Recently logged in
New to XING
10
4. Contact updates
The contact updates section gives Premium members a clear
overview of updates in their contact network so they can keep
track of things. The following contact updates are available:
•
•
•
•
•
New jobs
New employers
New contact details
Upcoming birthdays
Past birthdays
We will continue to expand these offerings over the coming
months.
Excellent initial user feedback
During the introductory phase we asked our New Premium beta
testers to send us their feedback. The feedback was excellent
with more than 90 per cent of participants saying that the New
Premium is either good or very good.
5. Premium Perks
The New Premium will also provide paid members with thirdparty offers and deals to help them with their daily working
life. At the launch of the New Premium, paid members will
receive access to Design Offices public co-working spaces and
12-month free access to the Blinkist app’s entire non-fiction
library.
Growth stable before relaunch
Growth remained stable in the period leading up to the New
Premium launch with 22,000 people going Premium in the
D-A-CH region between January and September 2013 (Q1-Q3
2012: 11,898). This took the total number of Premium members
to around 805,000 in D-A-CH and approximately 829,000 worldwide as of the end of September 2013. During the period under
review, the Premium Club consisting of membership fees and, to
a small extent, revenues from advertising space on the XING
platform, generated revenues of €40.08 million (Q1-Q3 2012:
€37.96 million).
To our shareholders
Financial information
Service
11
Interim group management report
e-Recruiting
Our e-Recruiting division has made good progress during the
first nine months of the current financial year. At the start of 2013
we acquired the leading employer review portal in Germanspeaking countries and swiftly integrated it into the XING family.
We were the world’s first social network to socialise job ads and
presented the new XING Talent Manager for active recruiting at
Germany’s largest human resources trade fair, Zukunft Personal.
e-Recruiting revenues
in € million
18
17.06
15
12.24
12
9
6
But what are the reasons for the sustained strong growth of
recruiting solutions on social networks such as XING?
The labour market will be driven by three main factors over the
coming years, and all of them will have a major impact on
recruiting work: A lack of experts, demographic change, and
the change in today’s employee expectations. Fewer and fewer
employees are entering the labour market, meaning that the
number of highly qualified workers is in decline. These workers,
in turn, are fully aware of this and have high expectations of
employers so expensive careers websites and high salaries are
not enough to entice them. Experts who today can pick and
choose between companies won’t work for the business that
offers a company car, the promise of running a department
at some point down the line, or annual pay rises. They will
choose a company providing childcare support, a sensible worklife balance, and transparent working structures. And this is
where employer branding and employer reviews (kununu.com)
come into play. Active candidate sourcing is also growing in
importance as experts simply don’t trawl online job boards any
more. Companies therefore need to go out in search of suitable
candidates.
3
0
Q1 -Q3 2012
Q1 -Q3 2013
With over 6.7 million members in the D-A-CH region, XING is
ideally suited to this purpose. This can also be backed up by a
recent ICR (Institute for Competitive Recruiting) study where
69 per cent of the HR managers surveyed said that XING is their
favourite active candidate sourcing tool.
In order to achieve this market position we have been working
at full speed on a new version of our Talent Manager. This versatile tool offers advanced search, filter and candidate management features and is a simple way for recruiters to look for and
get in touch with interesting candidates via the XING platform.
We presented the latest version of the XING Talent Manager
(XTM) at Germany’s largest human resources trade fair, Zukunft
Personal.
12
Our aim is to quickly and easily bring companies and candidates together who are well suited to one another. The Talent
Manager does not just offer a modern, intuitive design, it also
boasts a number of new features. We have built a tool that
makes it easier than ever for recruiters to find the right candidates. Easy is the operative word here as XTM should take
recruiters to ideal candidates with just a few simple steps.
Recruiters can even upload their job ads in Word or PDF format.
These files are then read out and used to create a project folder.
XTM then suggests suitable candidates based on the information
in this folder. Members can also enter more delicate information
such as their salary expectations and preferred place of work in
their profile for recruiters to see.
The new XTM was presented at Deutsche Telekom AG’s premises
by Marc-Stefan Brodbeck, Vice President Recruiting & Talent
Acquisition at Deutsche Telekom AG (DTAG) and Dr. Thomas
Vollmoeller, CEO at XING AG. DTAG acted as a showcase for the
new XTM and started using XING in its recruiting work at a
very early stage. Deutsche Telekom’s HR department started
using XTM at the start of this year and has measured its experience with the tool. The impact on the company’s recruiting
work was impressive with the cost to hire dropping by over
80 per cent thanks to XTM, and the time to hire was also drastically improved as well. We sold more than 3,000 XTM licenses
to corporate customers as of the end of September.
To our shareholders
Financial information
Service
13
Interim group management report
Socialised job ads
When jobseekers look for a new position, they want to have
access to real information that has not been manipulated in any
way. Unfortunately this has not always been the case as expensive careers sites, corporate brochures and jobs ads always do
their best to portray their company in the best-possible light. But
just how genuine is the information found there? Does this information really entice applicants? According to a XING survey carried out among 532 employees in German-speaking countries,
90 per cent said that the information and opinions of people
who actually work there are more important when looking for a
job than the company’s own careers site.
Wolfgang Brickwedde from the Institute for Competitive
Recruiting (ICR) described the XING Talent Manager as follows:
“The new XING Talent Manager is a mid-range car that isn’t fully
loaded with gadgets, but sets the standard in terms of usability.
This car is always ready to roll and even makes suggestions
about where to go because it knows the places the driver likes
to go.”
This is a clear-cut statement and evidence that today’s experts
fail to fall under the trance of expensive careers sites and glossy
brochures as they want to know what the company is really like
by taking a look behind the scenes before submitting an application. The best way to gain transparency on the labour market is
through honest employee opinions, and that is why we have
reinvented the job ad. In the past, vacancies contained official
company statements, but now jobseekers on XING can gain firsthand insights as they can see which of their contacts work at the
company that posted the ad. If they do not have any contacts
working there, they may still have a contact who knows someone who works there. Jobseekers can then get in touch with
these second-level or third-level contacts to find out more about
the company.
14
Jobseekers can now also see any reviews about the company
posted on kununu, the largest employer review platform in
German-speaking countries. Current and former employees can
also rate the company on a scale of 1 to 5 in various categories
such as working atmosphere, leadership behaviour and worklife balance, which in turn gives jobseekers access to key information about life as an employee at the company. They can
then decide whether or not to submit an application.
How much does a job ad on XING cost?
We offer a range of different job ad models, all of which boast
the new social features. Smaller companies who only occasionally look for new staff can take advantage of the TEXT ad which
is billed on a per-click basis (85 cents per click) with no fixed
term. While an ad is live, companies can see the ad’s current
click statistics. In addition, they can also deactivate the ad at
any time, meaning that they only pay for the actual number of
clicks the ad received. Companies can also upload ads to XING
that they designed themselves as a PDF file which is automatically formatted and then published online. These DESIGN ads
costs €595 and come with a 30-day term; the number of clicks
the ad receives is irrelevant. XING also offers a LOGO ad, which
costs €395 and also comes with a 30-day term. With this ad
type, companies can add a logo to their ad to incorporate their
brand. Finally, companies looking to hire works students, interns
and graduands can post free TEXT ads.
During these barren times on the labour market, businesses
simply cannot afford to ignore the opinions of their employees
in the public domain. Unfortunately a lot of companies still
think that they can win the battle for talent by spending a lot of
money on a careers site or brochure. Social media now means
that people have far more contacts and access to insider information than in the past, and companies need to embrace this
change and use their employees as part of a modern employer
branding strategy. At the end of the day, nobody is going to
choose to work at a company that only receives negative
reviews. This is a clear statement that something needs to be
done.
To our shareholders
Financial information
15
Service
Interim group management report
Events
After a slight downturn in growth during Q1, our Events division
gathered speed again as of the middle of the year and grew by
32 per cent during Q3/2013. Revenues saw a 24 per cent increase
to €3.67 million in the first nine months of the current financial
year. Our strategic realignment of the Events division is still well
underway. amiando, also known as XING Events, will increasingly become a digital business partner for ambitious event
organisers rather than a self-service platform for ticketing technology. Future publications will cover all of our next steps in
realigning our Events division.
Events revenues
in € million
4
3
2
1
0
We already took a major step by relaunching the amiando
website:
3.69
2.98
Q1 -Q3 2012
Q1 -Q3 2013
16
In September we launched a new version of the amiando website containing optimisations from content, design and technical
perspectives. The message conveyed by the relaunch is that amiando is the business event expert and ideal partner for organisers. As an events expert, amiando offers event management software for online event registration and ticketing as well as advice
for organisers when it comes to participant management and
even marketing.
In order to achieve this realignment, the website was modernised from the ground up and given a fresh and clear design.
The aim of the relaunch is to meet the website visitors’ needs
and foster customer relations.
The new website boasts interactive elements, an intuitive
design, appealing imagery, and has also been optimised for
mobile end devices. The menu has been trimmed, thus making
it easier to navigate around the site, while feature optimisations
and target-group-specific information provide site visitors with
quick and easy access to what they’re looking for in 4 languages.
The site also focuses more on business customers and provides
further insights into amiando as a company while also prominently featuring its mobile offerings.
amiando’s new design draws heavily on XING as amiando’s customers can also automatically post their events on XING and
benefit from the viral power of the leading business network in
German-speaking countries.
Social Media & Events Report 2013: How does the events
industry use social networks?
In August, amiando released the third edition of its Social Media
& Events Report.
Over the last couple of years this report has become a permanent fixture for event organisers and is considered to be a key
source of information about social media for the events industry.
The previous two reports were each downloaded over 10,000
times.
Main points covered by the report include the latest social
media trends and developments in the events industry as well
as a comparison of the 2012 and 2013 survey results. Here are a
few of the key facts we gleaned from the results of the survey:
Fact 1: Social media is still a key marketing tool
Organisers continue to use social media to advertise their
events. This can be backed up by the fact that over 80 per cent
of organisers intend to step up their social media activities during the course of 2013.
Fact 2: Great confidence in social media marketing
Confidence in the potential of social media marketing has grown
again during 2013. In 2012, around 75 per cent of event organisers planned to expand their social media activities, while in 2013
this figure has now risen to over 80 per cent. The majority of
organisers who used social media last year were happy with the
results.
Fact 3: Event promotion remains the main goal
Event and brand promotion are still the main objectives of social
media activities. Almost half (44 per cent) of event organisers
who used social media for these purposes achieved their goals;
this equates to 76 per cent of all organisers with these objectives.
The report is available for downloading here: http://info.
amiando.com/social-media-report-2013
To our shareholders
Financial information
Service
Interim group management report
Risk report
Permanent monitoring and management of risks are key tasks of
a listed company. For this purpose, the Company has implemented the early risk-recognition system required in accordance
with Section 91 (2) AktG and continuously develops it within the
context of current market and company developments.
Each individual employee is called on to actively look for and
prevent potential damages to the Company. Their task is to
immediately remove all risks in their own area of responsibility,
and to immediately notify the responsible parties in the event of
any indications of existing risks that may arise. An essential
requirement for such a task is knowledge of the risk management system and maximum risk awareness of each individual
employee. For this reason, XING familiarises its employees with
the risk management system in regular introductory events and
also with the aid of information material, and draws their attention to the significance of risk management.
Potential risks are continually identified and analysed. Identified
risks are then systematically evaluated as to their probability of
occurrence and the expected potential damage. The persons
with risk responsibility and senior executives are questioned
with regard to the status of existing risks and the identification
of new risks in the course of quarterly risk inventories and status
queries.
17
18
Consolidated interim financial statements
for the period from 1 January to 30 September 2013
Consolidated income statement
for the period from 1 January to 30 September 2013
01/01/2013 –
30/09/2013
01/01/2012 –
30/09/2012
01/07/2013 –
30/09/2013
01/07/2012 –
30/09/2012
61,000
53,419
21,142
18,081
1,060
806
440
252
62,060
54,225
21,582
18,333
Personnel expenses
(25,742)
(22,462)
(8,345)
(7,687)
Marketing expenses
(4,309)
(4,515)
(1,789)
(1,158)
Other operating expenses
(14,641)
(11,843)
(5,243)
(3,970)
17,368
15,405
6,205
5,518
(6,262)
(6,021)
(2,056)
(2,122)
11,106
9,384
4,149
3,396
100
311
37
68
0
(10)
0
(2)
11,206
9,685
4,186
3,462
(3,793)
(3,438)
(1,464)
(1,263)
7,413
6,247
2,722
2,199
Earnings per share (undiluted) in €
1.33
1.14
0.49
0.40
Earnings per share (diluted) in €
1.33
1.12
0.48
0.39
in € thousand
Service revenues
Other operating income
Total revenues
EBITDA
Depreciation and amortisation
EBIT
Interest income
Interest expenses
EBT
Taxes on income
Net profit
To our shareholders
Financial information
19
Service
Consolidated interim financial statements
Statement of comprehensive income
for the period from 1 January to 30 September 2013
in € thousand
Net profit
01/01/2013 –
30/09/2013
01/01/2012 –
30/09/2012
01/07/2013 –
30/09/2013
01/07/2012 –
30/09/2012
7,413
6,247
2,722
2,199
Currency translation adjustment
0
3
1
3
Other result
0
3
1
3
7,413
6,250
2,723
2,202
Total result for the period
20
Consolidated balance sheet
as of 30 September 2013
Assets in € thousand
30/09/2013
31/12/2012
Software and licenses
3,406
2,876
Internally generated software
8,488
7,044
Goodwill
12,498
5,574
3,572
1,582
555
547
5,088
4,574
Equity participations
51
51
Other financial assets
40
23
1,059
797
34,757
23,068
7,189
7,322
255
388
3,086
2,660
62,597
56,159
5,251
2,614
78,378
69,143
113,135
92,211
Non-current assets
Intangible assets
Other intangible assets
Property, plant and equipment
Tenant improvements
Other plant and machinery
Financial assets
Deferred tax assets
Current assets
Receivables and other assets
Receivables attributable to services
Tax refund assets
Other assets
Cash and cash equivalents and other short-term deposits
Cash and other current deposits
Third-party cash and cash equivalents
To our shareholders
Financial information
21
Service
Consolidated interim financial statements
Liabilities in € thousand
30/09/2013
31/12/2012
5,592
5,554
Treasury shares
(1,055)
(2,039)
Capital reserves
18,506
17,393
Other reserves
16,354
16,302
Retained earnings
18,876
14,552
58,273
51,762
Deferred tax liabilities
3,513
2,507
Deferred income
1,522
1,270
5,035
3,777
861
1,429
Deferred income
28,633
23,842
Other liabilities
20,333
11,401
49,827
36,672
113,135
92,211
Shareholders' equity
Subscribed capital
Non-current liabilities
Current liabilities
Trade accounts payable
22
Consolidated cash flow statement
for the period from 1 January to 30 September 2013
01/01/2013 –
30/09/2013
01/01/2012 –
30/09/2012
11,206
9,664
Amortisation on capitalised development costs
1,795
1,857
Depreciation and amortisation
4,467
4,165
52
781
(100)
(311)
145
418
0
10
(3,498)
(3,601)
372
0
Change in receivables and other assets
(355)
(389)
Change in liabilities
2,703
2,799
Non cash changes from changes in scope of consolidation
(1,431)
0
Change in deferred income
5,043
2,412
(2,637)
(2,704)
17,762
15,101
(2,895)
(1,770)
Purchase of other software
(1,675)
(1,414)
Purchase of property, plant and equipment
(2,851)
(1,986)
Purchase of consolidation companies (less cash acquired)
(2,949)
0
(10,370)
(5,170)
in € thousand
Earnings before taxes
Personnel expenses, stock option programme
Interest income
Interest received
Interest expenses
Taxes paid
Non-capitalisable payments for the acquisition of consolidated companies
Elimination of a­ miando third-party obligations
Cash flow from operating activities
Capitalisation of internally generated software
Cash flow from investing activities
To our shareholders
Financial information
23
Service
Consolidated interim financial statements
01/01/2013 –
30/09/2013
01/01/2012 –
30/09/2012
0
(19,953)
(3,089)
(3,020)
Sale of treasury shares
984
312
Capital increase from share-based payment
1,151
1,582
(954)
(21,079)
Differences due to currency translation
0
3
Change in cash and cash equivalents
6,438
(11,145)
56,159
66,196
62,597
55,051
Third-party cash and cash equivalents at beginning of period
2,614
2,021
Change in third-party cash and cash equivalents
2,637
2,704
5,251
4,725
in € thousand
Distribution from capital reserves
Dividend paid
Cash flow from financing activities
Cash and cash equivalents at beginning of period
Cash and cash equivalent at the end of the period
1)
Third-party cash and cash equivalents at the end of the period
1)
Cash and cash equivalents consist of liquid assets.
24
Consolidated statement of changes in equity
for the period from 1 January to 30 September 2013
Subscribed
capital
Capital
reserves
Treasury
stock
Other
reserves
5,426
14,008
(2,367)
15,700
9,829
42,596
0
0
0
3
0
3
0
0
0
3
0
3
Net result
0
0
0
0
6,247
6,247
Total result for period
0
0
0
3
6,247
6,250
in € thousand
As of 01/01/2012
Currency conversion
Total income and expense for the
period recognised directly in equity
Capital increase from
share-based ­payment
Retained Share­holders’
earnings equity, total
53
1,529
0
0
0
1,582
Dividend paid
0
0
0
0
(3,020)
(3,020)
Sale of treasury shares
0
0
312
0
0
312
Personnel expenses,
stock option programme
0
0
0
781
0
781
As of 30/09/2012
5,479
15,537
(2,055)
16,484
13,056
48,501
As of 01/01/2013
5,554
17,393
(2,039)
16,302
14,552
51,762
0
0
0
0
0
0
0
0
0
0
0
0
Net result
0
0
0
0
7,413
7,413
Total result for period
0
0
0
0
7,413
7,413
38
1,113
0
0
0
1,151
Dividend paid
0
0
0
0
(3,089)
(3,089)
Sale of treasury shares
0
0
984
0
0
984
Personnel expenses,
stock option programme
0
0
0
52
0
52
5,592
18,506
(1,055)
16,354
18,876
58,273
Currency conversion
Total income and expense for the
period recognised directly in equity
Capital increase from
share-based ­payment
As of 30/09/2013
To our shareholders
Financial information
Service
25
Consolidated interim financial statements
Notes to the consolidated interim financial statements
for the period from 1 January to 30 September 2013
Company and Group information
XING AG is headquartered in Dammtorstraße 29-32, 20354
Hamburg, Germany, and listed at the Hamburg District
Court (Amtsgericht) under the commercial register number
HRB 98807. The Company’s parent is Burda Digital GmbH,
Munich, Germany, and the ultimate parent has been Hubert
Burda Media Holding Kommanditgesellschaft, Offenburg,
Germany, since 18 December 2012.
Based on the total number of individual visitors worldwide,
XING is one of the top business network websites. The international, multilingual, online platform is a “connection hub” that
allows its members to find new business contacts and maintain
existing ones while also providing them the opportunity to
expand their horizons into new markets and exchange opinions
and information online. XING largely generates its revenues
from paid memberships and currently refrains from serving its
Premium members with advertising while they use the
platform.
Basis for preparing the financial statements and
accounting methods
The accounting principles applied to this consolidated interim
financial statement are the same as those used for the annual
consolidated financial statement for the financial year ended
31 December 2012. This interim financial statement has not been
audited or subject to a review report.
kununu GmbH acquisition in January 2013
XING AG acquired Austrian-based firm kununu GmbH with
economic effect from 1 January 2013. XING paid around €3.6 million
for kununu upon signing the contract, with additional payments
of up to €5.8 million to be made by February 2015 depending on a
number of factors, in particular the company’s revenue and EBITDA
development during the course of 2013 and 2014. Expenses of
€0.4 million relating to this acquisition were incurred in the 2012
financial year and are included in the other operating expenses. The
initial consolidation took place at the same time the shares were
transferred.
The outflow of funds due to the acquisition is illustrated as follows:
in € thousand
Purchase price incl. possible earnouts
These condensed consolidated financial statements for the
period ending on 30 September 2013 have been prepared in
accordance with the International Financial Reporting Standards
for Interim Statements (IAS 34) as applicable in the EU. The condensed consolidated financial statements do not contain all of
the information required for full annual consolidated financial
statements, and should be read in conjunction with the consolidated financial statements as at and for the year ended
31 December 2012.
The period under review began on 1 January 2013 and ended on
30 September 2013. The corresponding previous year period
began on 1 January 2012 and ended on 30 September 2012. The
XING AG consolidated interim financial statements and interim
group management report dated 30 September 2013 were
approved for publication on 6 November 2013 by the Executive
Board.
2013
(9,317)
Costs directly attributable to the acquisition
(372)
External cash acquired with the subsidiary
1,085
Plus purchase price not yet paid
5,655
Outflow of cash (net)
(2,949)
26
The fair values of kununu’s assets and debts at the time of acquisition consist of the following:
Initial consolidation
in € thousand
Purchase price incl. possible earnouts
Initial consolidation
in € thousand
08/01/2013
Assets
Property, plant and equipment
Receivables attributable to services
Other assets
Cash and cash equivalents
109
15
132
Equity of kununu GmbH
08/01/2013
9,317
204
Value of purchase price allocation
9,521
Value of internally generated software
(380)
Value of brand/domain
(780)
Value of customer relations
Deferred tax assets
1,085
Deferred tax liabilities
1,341
Goodwill
(2,020)
(213)
795
6,924
Liabilities
Provisions
(42)
Trade accounts payable
(95)
Other liabilities
(1,391)
(1,528)
Total identifiable net assets due to the acquisition
(187)
The purchase price allocation was provisionally made at
the time of the Group’s consolidated financial statements on
31 March 2013. A definitive distribution of the purchase price
between assets that can be identified and rated will take place
during the 2013 financial year. Goodwill to be recognised can be
attributed to anticipated synergies and other effects resulting
from kununu GmbH’s activities. The provisional fair values
of kununu’s assets and debts, identified at the time of initial
consolidation within the scope of the purchase price allocation,
consist of the following:
Based on its 2012 financial statements, the purchase price for
kununu GmbH was adjusted by €72 thousand to €9,317 thousand during the second quarter while its equity was adjusted
at the same time by €17 thousand to €204 thousand. The com­
pany’s goodwill therefore also rose by €89 thousand to
€6,924 thousand.
During the first nine months of 2013, kununu GmbH reported
revenues of €2,461 thousand and earnings of €514 thousand.
Treasury shares
In order to service claims resulting from stock option plans,
37,500 thousand treasury shares were sold to eligible share­
holders in the first nine months of 2013 (Q1-Q3 2012: 11,892). The
proceeds amounted to €984 thousand. As of 30 September 2013,
XING AG still held over 37,832 treasury shares (31/12/2012: 75,332
shares).
Dividend payment
Pursuant to the AGM held on 24 May 2013, XING AG paid out a
dividend of €0.56 € per share for the 2012 financial year on
25 May 2013. With 5,516,671 shares eligible to receive a dividend,
this equates to a total payout of €3,089,335.76.
To our shareholders
Financial information
27
Service
Consolidated interim financial statements
Breakdown of other operating expenses
Division information
The following table breaks down the primary items of sundry
operating expenses:
XING AG has one division subject to reporting requirements,
with the divisions Network (core XING platform features and
Enterprise Groups), Premium Club (paid memberships, display
advertising, and partnerships), e-Recruiting (Jobs, Company
Profiles, and the XING Talent Manager) and Events. The
Company was split up into divisions and regions in order to
reflect the internal organisational structure and line of reporting
to the Executive Board and Supervisory Board. At the end of
2012, the existing divisions were reorganised, so the previous
year’s figures have been adapted in order to be able to draw a
comparison.
01/01/2013 –
30/09/2013
01/01/2012 –
30/09/2012
IT services, management services
and services for new markets
3,461
2,817
Office expenses
2,960
2,263
Payment processing
1,493
1,261
Server hosting, administration
and traffic
1,489
850
Travel, entertainment and other
business expenses
1,209
1,024
Other personnel expenses
663
647
Audit and accounting fees
619
732
Legal consultancy fees
426
501
Training
384
301
Expenses attributable to other
periods
275
Currency losses
in € thousand
The division revenues for the period under review are shown in
the following tables:
in € thousand
01/01/2013 –
30/09/2013
01/01/2012 –
30/09/2012
Premium Club
40,077
37,956
e-Recruiting
17,058
12,243
119
Events
3,687
2,979
268
130
Network
178
241
Phone/cell phone/postage/courier
257
270
Total
61,000
53,419
Charges, fees and contributions
219
158
Supervisory board compensation
210
178
Rental/leasing
172
92
01/01/2013 –
30/09/2013
01/01/2012 –
30/09/2012
Office equipment
147
103
Losses on receivables
139
117
D-A-CH region (Germany, Austria,
Switzerland)
58,197
50,847
Other
250
280
International
2,803
2,572
Total
14,641
11,843
61,000
53,419
The increased services costs were mainly attributable to a rise in
IT and product development costs. The increase in expenses for
premises and server hosting, administration and traffic is largely
due to the data centre expansion and increased office space
required to accommodate the rise in the number of employees
at the Hamburg office. The other expenses include such things
as insurance premiums and vehicle costs.
in € thousand
Total
As there are no considerable changes to long-term assets, these
have not been listed in the table.
28
Related parties
Please refer to the consolidated financial statements as at and
for the year ended 31 December 2012 for information about
related parties. No major changes took place between 1 January
and 30 September 2013.
Significant events during and after the interim
reporting date
No events of any significance occurred subsequent to the period
under report that will have any major impact on the XING
Group’s business development.
Hamburg, 6 November 2013
The Executive Board
Dr. Thomas Vollmoeller Ingo Chu
Timm Richter Jens Pape
To our shareholders
Financial information
Service
29
Financial calendar,
masthead and contact
FINANCIAL CALENDAR
Date
Event
6 November 2013
Interim Report Q3 2013, Hamburg
28 March 2014*
Annual Report 2013, Hamburg
6 May 2014*
Interim Report Q1 2014, Hamburg
23 Mai 2014
Annual General Shareholder Meeting, Hamburg
6 August 2014*
Interim Report HY1 2014, Hamburg
6 November 2014*
Interim Report Q3 2014, Hamburg
* Subject to change.
MASTHEAD and CONTACT
This interim financial report is available in German and English.
You can find both versions and additional press information on the
Internet at http://corporate.xing.com.
For Annual Reports, Interim Reports, and current financial information about XING AG, please contact:
XING AG
Patrick Möller
Director Investor Relations
Our social media channels
http://blog.xing.com
(The XING AG corporate blog is available in four languages)
www.xing.com/net/pri1a41bcx/Anlegerforum_XING_Aktie
(German-language group for XING investors)
Twitter: xing_ir
(Information and news related to the capital markets)
Dammtorstrasse 29 – 32
Twitter: xing_de
(Topics and news related to the company in general - German only)
20354 Hamburg
Phone: +49 40 41 91 31 793
Fax: +49 40 41 91 31 44
Twitter: xing_com
(Corporate information and news in English)
Editor
Patrick Möller
Concept and Design
HGB Hamburger Geschäftsberichte
GmbH & Co. KG
Youtube: www.youtube.com/user/XINGcom?gl=DE
(XING AG YouTube channel)
Facebook: www.facebook.com/XING
(XING AG Facebook profile)
For press enquiries and current information about XING AG,
please contact:
Corporate Communications
Phone: +49 40 41 91 31 763
Fax: +49 40 41 91 31 11
[email protected]
www.xing.com